DOMESTIC ECONOMIC GROWTH AND GLOBAL BUSINESS INFLUENCE

Thus, there are two reasons why economic growth has been an underlying force in the expansion of the international economy. First, growth has created market opportunities. The existence of market opportunities has been the major incentive for the international expansion of enterprise . DOMESTIC ECONOMIC GROWTH AND GLOBAL BUSINESS INFLUENCE
Of course, international enterprise itself contributed to the process of development and the creation of market opportunities in host countries. Second, economic growth has reduced the resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.

DOMESTIC ECONOMIC GROWTH AND GLOBAL BUSINESS INFLUENCE

When a country is growing rapidly, receptiveness is encouraged because a growing country means growing markets, therefore, expanding opportunities. Under this condition it is possible for an outside or international company to enter a domestic economy and to establish itself without taking business away from local firms. The growing economy is a classic illustration of the so called nonzero-sum game whereby players can participate and win without doing so at the expense of others because their "play" enlarges the total gains to be distributed. Without economic growth, international participation in countries can occur only if global firms are able to take business away from local enterprise. When there is competition between international and domestic enterprise, it is more likely that domestic enterprise will seek governmental intervention to protect its local position if markets are not growing than it is if they are growing . The worldwide recession of the early 1990s created a predictable pressure in most countries to limit access to domestic markets.

EXPERT SAYS :-

Recently carried out survey says that global business and marketing can change a nation's interior economy as well as GDP  too.

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